Six Sigma

A Strategy
for
Achieving
World
Class
Perfor-
mance
Presented by :

MOHD.ARISH
 CONTENTS

Introduction
Understanding Six Sigma
Background and growth of Six sigma
Methodology
Key role of six sigma
What make it different
Benefits
Certificate of Six Sigma
Conclusion
 SIX SIGMA

A highly disciplined process that helps us focus on

developing and delivering near-perfect products and
services.

 The word Six Sigma is a statistical term that

measures how far a given process deviates from
perfection.

The central idea behind Six Sigma is that if you can

measure how many “defects” you have in a process,
you can systematically figure out how to eliminate
them and get as close to “zero defects” as possible.
 MEANING

A term used in statistics to represent standard deviation, an

indicator of the degree of variation in a set of a process
 DEFINATION

Business Definition

A break through strategy to significantly improve

customer satisfaction and shareholder value by reducing
variability in every aspect of business.

Technical Definition

A statistical term signifying 3.4 defects per million

opportunities.
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 Understanding Six Sigma

Process Control

Plan Do Check Act;

Common and Special Causes;

Improvement can be done project by project.

Statistical tools

Hawthorne Plant Experiences

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 Understanding Six Sigma

 Degree of variation;
 Sigma is a letter in the Greek Alphabet
 Level of performance in terms of defects
 Statistical measurement of process capability
 Benchmark for comparison
 Process improvement methodology
 It is a Goal
 Strategy for change;
 A commitment to customers to achieve an acceptable
level of performance

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 ORIGIN OF SIX SIGMA
 Motorola company that invented Six Sigma.

The term “Six Sigma” was coined by Bill Smith, an engineer

with Motorola
Late 1970s - Motorola started experimenting with problem
solving through statistical analysis
1987 - Motorola officially launched it’s Six Sigma program
Motorola saved more than $ 15 billion in the first 10 years
of its Six Sigma effort
 The Growth Of Six SIGMA

The company that perfected Six Sigma

Jack Welch launched Six Sigma at GE in Jan,1996

 At GE, Six Sigma added more than $ 2 billion to the

bottom line in 1999 alone.
THE GROWTH OF SIX SIGMA
 Six Sigma methodology

DMADV DMAIC

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Lean Six Sigma Methodology
 Six Sigma Project Methodology
Define Measure
Measure Analyze
Analyze Improve
Improve Control
Control

Identify, Collect data Analyze Improvem Establish

on size of the data, ent standards to
evaluate
selected establish strategy maintain
and select problem, and confirm Develop process;
projects for identify key the “ ideas to Design the
improveme customer vital few “ remove controls,
nt requirements determinant root causes implement
, s of the Design and and monitor.
Determine performanc carry out Evaluate
Set goals key product e. experiment financial
and process s, impact of the
Form characteristi Validate Optimize project
teams. c. hypothesis the
process.
 Key Roles for Six Sigma

 Master black Belt

 Black Belts
 Green Belts
 Team Members
• Quality Fundamentals/ Kaizen Now
 Who are Implementing Six Sigma
At least 25% of the fortune 200 claim to have a serious six
sigma program
Financial - Bank of America, GE Capital,
 Electronics - Allied Signal, Samsung, Sony
Chemicals - DuPont, Dow Chemicals
Manufacturing - GE Plastics, Johnson and Johnson,
Motorola, Nokia, Microsoft, Ford.
Airline - Singapore, Lufthansa, Bombardier
And hundreds of others in Americas, Europe, Sub Continent
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 Six Sigma Results
Company Annual Savings
General Electric $2.0+ billion
JP Morgan Chase *$1.5 billion (*since
inception in 1998)
Motorola $ 16 billion (*since
inception in 1980s)
Johnson & Johnson $500 million
Honeywell $600 million

•Six Sigma Savings as % of revenue vary from 1.2 to 4.5 %

•For $ 30 million/yr sales – Savings potential $ 360,000 to $ 1.35 million.
•Investment: salary of in house experts, training, process redesign.
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 What Makes Six Sigma Different?

Versatile
Breakthrough improvements
Financial results focus
Process focus
Structured & disciplined problem solving methodology using
scientific tools and techniques.
Customer centered
Involvement of leadership is mandatory.
Training is mandatory

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 Benefits of Six Sigma

Generates sustained success

Sets performance goal for everyone

Enhances value for customers;

Accelerates rate of improvement

Promotes learning across boundaries

Executes strategic change

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THANK
YOU
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